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A Credit Union for Mid Beds becomes a Reality
For the first time people living and/or working in Mid Beds will be able to join a Credit Union.
At January's Mid Beds District Council's Executive meeting it was agreed to financially support a Credit Union for the people of Mid Bedfordshire. This follows Bedford Credit Union's agreement to extend their Common Bond to cover the whole of Mid Bedfordshire.
This facility has been made possible thanks to an extensive feasibility study and good partnership working between Mid Beds District Council, Aragon Housing Association, Mid Beds Citizens Advice Bureau, Community & Voluntary Service Mid & North Beds and the Beds County Council.
What are Credit Unions?
Credit Unions are locally run, not-for-profit organisations offering savings schemes and low interest loans to their members. Any surpluses made are returned to members as dividends or re-invested in the Credit Union. Each Credit Union has a Common Bond which determines who can become a member, and now Bedford Credit Union are extending their common bond to cover the whole of Mid Bedfordshire.
Credit Unions operate in Britain under the provisions of the Credit Unions Act 1979. They are regulated and supervised by the Financial Services Authority (FSA), which is also responsible for the regulation of all other financial services providers in the country. So not only is there strict regulation by the FSA, but also Credit unions are members of the National Compensation Scheme which guarantees 100% of members' savings in the event of a Credit union collapse.
What are Benefits of having a Credit Union in Mid Beds?
A Credit Union in Mid Beds will have a number of beneficial effects including:
- Encouraging saving - Members may open more than one savings account - e.g. Christmas savings accounts as alternative to such as Farepak, or for holidays, weddings, etc.
- Providing low cost loans - dependent on the amount saved, no arrangement or re-arrangement fees, no penalty charges, and flexibility to suit members' circumstances.
- Payroll Deduction - a painless way to save and no need to visit the offices
- Free Insurance – loan protection insurance is built into loan arrangements at no extra cost to the member. This insurance covers the amount of any outstanding Credit Union loan if a member dies. Additionally a free life insurance scheme provides a lump-sum if a member dies. The amount paid depends on the member's age and amount of savings they had.
- The Department for Work and Pensions allows Credit Unions members to have their benefits paid directly into their saving accounts.
- Help reduce the increasing levels of personal debt problems
- Providing education and advice on financial management, especially for young people
Why not begin saving now?
Although structures have not yet been developed in Mid Beds, as Bedford Credit Union is already operating, people living or working in Mid Beds can become members straight away. Over the next 12 months, local Credit Union offices in Mid Beds will be trialled but until then their central office is in St Paul’s Square, Bedford. Opening Hours are:
- Monday - 12noon to 4pm
- Tuesday - 7pm to 8.30pm
- Wednesday - 10am to 4pm
- Friday - 10am to 1pm
- Saturday - 9am to 12 noon
How can I help?
Why not become a volunteer? – want to learn new skills, or do you have skills that could be utilized to help? We require cashiers and receptionists, loans officers dealing with loan applications, directors, help to run school savers clubs, and supervisory committee members. A minimum weekly commitment would be 2 hours per week. Training will be provided.
For more information about becoming a volunteer or a member to just finding out more contact Bedford Credit Union on 01234 346352 or email bedcu@tiscali.co.uk
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